Erin Energy Announces Full Year and Fourth Quarter 2017 Results

March 15, 2018

Provides Operational Update on its West and East Africa Operations

HOUSTON–(BUSINESS WIRE)–Erin Energy Corporation (Erin Energy or the Company) (NYSE American:ERN)
(JSE:ERN) announced today unaudited financial and operational results
for the year ended December 31, 2017. The Company intends to file its
audited financials and Annual Report on Form 10-K for the year ended
December 31, 2017 with the Securities and Exchange Commission after
close of market on Friday, March 16, 2018.

2017 Highlights:

Crude sales volumes of more than 1.8 million net barrels of oil;
$101.2 million in revenue, a 30% increase over 2016;
Total production of approximately 1.7 million net barrels of oil;
Spudded successful Miocene exploration well offshore Nigeria.

“During 2017, we produced approximately 1.7 million net barrels of
oil and generated revenues of more than $101 million,” said Femi
Ayoade, Chief Executive Officer. “2017 had its challenges for our
industry and our company, but Erin Energy’s perseverance and some
stabilization of the commodity price, allowed for good progress in many
of our efforts.”

Ayoade continued, “The most exciting accomplishments were the farm
out to FAR, and more recently PETRONAS, to our offshore blocks in The
Gambia and our Miocene discovery with the Oyo-NW well.”

Operational Update

Average net daily production for 2017 was approximately 4,900 bopd
compared to approximately 4,800 bopd for 2016. For the fourth quarter
2017, net daily production was approximately 4,000 bopd compared with
5,800 for the comparative period in 2016. The average price received for
2017 was $54.84 per barrel compared to $45.45 in 2016.

Net production volumes for the year were approximately 1.7 million net
barrels of oil compared to approximately 1.8 million net barrels in
2016. The Company’s crude oil inventory was approximately $3.6 million
at December 31, 2017.

The Company announced early this year that it had successfully completed
the drilling of the Oyo-NW exploration well and that it had discovered
hydrocarbons in the Miocene Formation. The well is located approximately
9.5 kilometers northwest of the Oyo Central field on the Company’s
offshore Nigeria block 120.

Oyo-NW was drilled to a total vertical depth subsea of 12,218 feet and
penetrated multiple sand units with total gross thickness of 260 feet in
the depth range from 7,052 – 10,873 feet TVDSS as interpreted from
wireline log data including approximately 115.2 feet of gross
hydrocarbons in the two Miocene targets, U7.0 and U8.0.(1)

The Company is now planning an appraisal of the discovery for the
second-half of 2018, subject to the availability of capital and drilling
services.

In The Gambia, the Company completed a farm-in agreement in early-2017
with FAR Ltd., an ASX listed company, which has seen successful offshore
in Senegal with its SNE field discovery and subsequent appraisal
program. The Company recently announced that a subsidiary of Petroliam
Nasional Berhad (PETRONAS) has also farmed into The Gambia blocks and
that the joint venture plans to drill the Samo-1 prospect, which as
reported by our partner FAR is estimated to contain unrisked mean
prospective resources of 825 million barrels of oil volume*.

In Ghana, Erin Energy announced that the Final Judgement was issued by
the International Tribunal of the Law of the Sea on Maritime Boundary
Arbitration between Ghana and Côte d’Ivoire. The maritime boundary
delimited by the Special Chamber’s decision ruled in favor of Ghana and
had no material impact on the Company’s Expanded Shallow Water Tano
block.

Erin Energy has re-commenced work with the Government of Ghana and its
joint venture partners to progress operational activities and is
planning a 3D marine seismic survey acquisition later this year. We plan
to tender the 3D seismic survey once we receive government approval.

The Company’s year-end 2017 SEC proved oil reserves were 7.1 million
barrels (MMbbls). The Company’s reported reserves are prepared by
DeGolyer and MacNaughton.

Financial Summary

Full year 2017 revenues were $101.2 million, up approximately 30% from
$77.8 million in 2016. Fourth quarter 2017 revenues were $21.7 million
compared to $21.1 million for the same period in 2016.

The Company reported a net loss of $151.9 million or a loss of $0.71 per
share for full year 2017 compared with a net loss of $142.4 million or a
loss of $0.67 per share for full year 2016.

Exploration expenses totaled $4.6 million for the full year. As of
December 31, 2017 cash, cash equivalents and restricted cash were
approximately $33.8 million.

The Company’s audited financial statements will contain an unqualified
audit opinion from its independent registered public accounting firm
that included a going concern emphasis of matter paragraph. This
disclosure is made pursuant to NYSE American Company Guide, Section
610(b), which requires separate disclosure of receipt of an audit
opinion containing a going concern qualification.

Conference Call and Webcast Information

The Company will host a conference call on Friday, March 16, 2018 at
10:00 a.m. CT (11:00 ET) to discuss the results and update its current
operations.

The dial-in number to access the conference call is 1-844-883-3907 in
the United States or 1-412-317-9253 internationally. Participants should
ask the call operator to be placed on the “Erin Energy Results
Conference Call.”

For those unable to participate in the Company’s conference call, a
replay will be available for audio playback until March 23, 2018. The
number to access the conference call replay is 1-877-344-7529 or outside
the US 1-412-317-0088. The passcode for the replay is 10117494.

Erin Energy Corporation

Erin Energy Corporation is an independent oil and gas exploration and
production company focused on energy resources in sub-Saharan Africa.
Its asset portfolio consists of 5 licenses across 3 countries covering
an area of 6,100 square kilometers (~1.5 million acres), including
current production and other exploration projects offshore Nigeria, as
well as exploration licenses offshore Ghana and The Gambia. Erin Energy
is headquartered in Houston, Texas, and is listed on the New York and
Johannesburg Stock Exchanges under the ticker symbol ERN.

For more information about Erin Energy or to request a hard copy of the
Company’s most recent complete audited financial statements free of
charge, please call +1 713 797 2940 or visit www.erinenergy.com.

(1) Source: Based on management estimates.

Forward-Looking Statements

This news release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, concerning activities, events or
developments that the Company expects, believes or anticipates will or
may occur in the future are forward-looking statements. Although the
Company believes the expectations reflected in these forward-looking
statements are reasonable, they involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.

The Company’s actual results could differ materially from those
anticipated or implied in these forward-looking statements due to a
variety of factors, including the Company’s ability to successfully
finance, drill, produce and/or develop the wells and prospects
identified in this release, and risks and other risk factors discussed
in the Company’s periodic reports filed with the Securities and Exchange
Commission. All forward-looking statements are expressly qualified in
their entirety by this cautionary statement. You should not place undue
reliance on forward-looking statements, which speak only as of their
respective dates. The Company undertakes no duty to update these
forward-looking statements.

*Prospective Resource Estimates Cautionary Statement

With respect to the Prospective Resource estimates contained within
this report, it should be noted that the estimated quantities of
Petroleum that may potentially be recovered by the future application of
a development project may relate to undiscovered accumulations. These
estimates have an associated risk of discovery and risk of development.
Further exploration and appraisal is required to determine the existence
of a significant quantity of potentially moveable hydrocarbons. The
Prospective Resource estimates provided in this report are Low Estimate,
Best Estimate and High Estimate and represent that there is a 90%, 50%
and 10% probability respectively that the actual resource volume will be
in excess of the amounts reported.

ERIN ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for per share amounts)
Years Ended December 31,
2017	2016	2015
Revenues:
Crude oil sales, net of royalties	$	101,173	$	77,815	$	68,429
Operating costs and expenses:
Production costs	80,912	94,607	90,079
Crude oil inventory (increase) decrease	2,093	(1,469	)	(2,502	)
Workover expenses	(713	)	7,860	972
Exploratory expenses	4,577	39,269	16,437
Depreciation, depletion and amortization	55,342	58,051	97,179
Accretion of asset retirement obligations	1,933	1,867	1,931
Impairment of oil and gas properties	78,711	645	261,208
Loss on settlement of asset retirement obligations	—	205	3,653
General and administrative expenses	11,053	13,772	15,905
Total operating costs and expenses	233,908	214,807	484,862
Loss on disposal of other property and equipment	148	—	—
Gain on sale of oil and gas properties	(2,348	)	—	—
Operating loss	(130,535	)	(136,992	)	(416,433	)
Other income (expense):
Currency transaction gain	5,241	15,674	2,520
Interest expense	(27,656	)	(21,924	)	(17,986	)
Gain on fair value of derivative liability	36	—	—
Total other expense, net	(22,379	)	(6,250	)	(15,466	)
Loss before income taxes	(152,914	)	(143,242	)	(431,899	)
Income tax expense	—	—	—
Net loss before non-controlling interest	(152,914	)	(143,242	)	(431,899	)
Net loss attributable to non-controlling interest	1,022	841	962
Net loss attributable to Erin Energy Corporation	$	(151,892	)	$	(142,401	)	$	(430,937	)
Net loss attributable to Erin Energy Corporation per common share:
Basic	$	(0.71	)	$	(0.67	)	$	(2.04	)
Diluted	$	(0.71	)	$	(0.67	)	$	(2.04	)
Weighted-average common shares outstanding:
Basic	213,713	212,318	211,616
Diluted	213,713	212,318	211,616

ERIN ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except for share and per share data)
As of December 31,
2017	2016
ASSETS
Current assets:
Cash and cash equivalents	$	22,134	$	7,177
Restricted cash	11,694	2,600
Accounts receivable – trade	6,676	—
Accounts receivable – partners	1,779	674
Accounts receivable – related party	2,926	1,956
Accounts receivable – other	67	29
Crude oil inventory	3,604	9,398
Prepaids and other current assets	2,452	872
Total current assets	51,332	22,706
Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net	199,402	265,713
Other property, plant and equipment, net	359	716
Total property, plant and equipment, net	199,761	266,429
Other non-current assets
Other non-current assets	35	66
Other assets, net	35	66
Total assets	$	251,128	$	289,201
LIABILITIES AND CAPITAL DEFICIENCY
Current liabilities:
Accounts payable and accrued liabilities	$	277,404	$	244,963
Accounts payable and accrued liabilities – related party	40,483	29,513
Accounts payable – partners	249	—
Short-term note payable – related party	200	—
Current portion of long-term debt, net	78,183	12,627
Derivative liability	1,799	—
Total current liabilities	398,318	287,103
Long-term notes payable – related party, net	129,830	129,796
Long-term debt, net	61,349	74,446
Asset retirement obligations	24,409	22,476
Total liabilities	613,906	513,821
Commitments and contingencies
Capital deficiency:
Preferred stock $0.001 par value – 50,000,000 shares authorized; none issued and outstanding as of December 31, 2017 and 2016, respectively	—	—
Common stock $0.001 par value – 416,666,667 shares authorized; 215,093,647 and 212,622,218 shares outstanding as of December 31, 2017 and 2016, respectively	215	213
Additional paid-in capital	807,473	792,972
Accumulated deficit	(1,170,184	)	(1,018,292	)
Treasury stock at cost, 307,843 and 99,932 shares as of December 31, 2017 and 2016, respectively	(945	)	(228	)
Total deficit – Erin Energy Corporation	(363,441	)	(225,335	)
Non-controlling interests	663	715
Total capital deficiency	(362,778	)	(224,620	)
Total liabilities and capital deficiency	$	251,128	$	289,201

ERIN ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Years Ended December 31,
2017	2016	2015
Cash flows from operating activities
Net loss, including non-controlling interest	$	(152,914	)	$	(143,242	)	$	(431,899	)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation, depletion and amortization	55,342	58,051	97,179
Impairment of oil and gas properties	78,711	645	261,208
Write-off of suspended exploratory well costs	—	33,031	—
Asset retirement obligation accretion	1,933	1,867	1,931
Amortization of debt issuance costs	4,496	3,615	2,766
Loss on settlement of asset retirement obligations	—	—	3,653
Unrealized currency transaction gain	(2,536	)	(15,674	)	(2,520	)
Loss on disposal of other property and equipment	148	—	—
Gain on sale of oil and gas properties	(2,348	)	—	—
Gain on fair value of derivative liability	(36	)	—	—
Share-based compensation	1,932	2,941	5,027
Payments to settle asset retirement obligations	—	—	(16,640	)
Settlement of accounts payable and accrued expenses	(10,189	)	—	—
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(3,492	)	630	(804	)
(Increase) decrease in crude oil inventory	2,093	(1,469	)	(2,502	)
(Increase) decrease in prepaids and other current assets	(1,456	)	(187	)	746
Increase in accounts payable and accrued liabilities	54,373	66,147	84,000
Net cash provided by operating activities	26,057	6,355	2,145
Cash flows from investing activities
Capital expenditures	(61,015	)	(19,293	)	(84,039	)
Net cash used in investing activities	(61,015	)	(19,293	)	(84,039	)
Cash flows from financing activities
Proceeds from the exercise of stock options and warrants	—	364	1,855
Payments for treasury stock arising from withholding taxes upon restricted stock vesting and exercise of stock options	(717	)	(228	)	—
Proceeds from MCB Finance Facility	65,736	—	—
Repayments of MCB Finance Facility	(141	)	—	—
Proceeds from JSC 2017 Note	11,687	—	—
Repayments of term loan facility	(9,101	)	(5,968	)	(337	)
Proceeds from note payable – related party, net	—	6,829	61,815
Proceeds from short-term note payable	—	504	—
Proceeds from short-term notes payable – related party	200	—	—
Repayment of short-term note payable	—	(449	)	—
Debt issuance costs	(8,655	)	(1,040	)	—
Funds released from restricted cash, net	—	6,061	—
Funds restricted for debt service	(9,094	)	—	—
Funding from non-controlling interest	—	—	553
Net cash provided by financing activities	49,915	6,073	63,886
Effect of exchange rate on cash and cash equivalents	—	5,679	1,228
Net increase (decrease) in cash and cash equivalents	14,957	(1,186	)	(16,780	)
Cash and cash equivalents at beginning of year	7,177	8,363	25,143
Cash and cash equivalents at end of year	$	22,134	$	7,177	$	8,363
Supplemental disclosure of cash flow information
Cash paid for:
Interest, net of amounts capitalized	$	11,022	$	10,407	$	11,114
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common shares for settlement of liabilities	$	3,527	$	—	$	125
Discount on notes payable pursuant to issuance of warrants	$	10,785	$	53	$	4,911
Reduction in oil and gas properties arising from settlement of accounts payable and accrued liabilities	$	11,478	$	10,048	$	—
Reduction in accounts payable from settlement of Northern Offshore contingency	$	—	$	—	$	24,307
Receivable from non-controlling interest	$	—	$	—	$	552
Shares issued for services	$	93	$	—	$	—
Change in asset retirement obligation estimate	$	—	$	—	$	(4,284	)